Godongwana announces measures to address municipal debt crisis

By Charles Molele

Finance Minister Enoch Godongwana has announced a series of initiatives aimed at alleviating financial pressures and restoring stability in local government, including the Eskom Municipal Debt Relief Programme.

Godongwana tabled the Medium-Term Budget Policy Statement at the National Assembly in Cape Town on Wednesday.

At the moment, 50 of the country’s 257 municipalities have implemented financial recovery plans, while three – Mangaung, Enoch Mgijima, and Lekwa – are under national intervention due to governance and financial failures. 

Godongwana acknowledged that, given the scale of the challenges, it was not feasible for the national government to intervene in all municipalities simultaneously.

“To systematically resolve these local government failures, several initiatives are underway,” he said. 

“The Eskom Municipal Debt Relief Programme is one of these key interventions, designed to reduce the debt burden on municipalities and strengthen their capacity to provide essential services.”

Since February, when the relief programme